Austria's Part-Time Pension Scheme Sees Low Uptake

Austria's "part-time pension" initiative, designed to keep older workers engaged in the labor force, has garnered surprisingly little interest since its introduction at the beginning of 2026. Official data reveals that only 313 individuals applied for the scheme in the first six months of the year, a stark contrast to the government's initial projections.

The Ministry of Social Affairs had anticipated that approximately 10,000 people would opt for the part-time pension annually, forecasting significant savings for the state. Projections indicated potential savings of around 200 million euros for 2026 and 400 million euros for 2027. However, the current application numbers suggest these financial targets will not be met.

The scheme permits employees, in agreement with their employers, to draw a portion of their pension while continuing to work reduced hours, provided they meet the criteria for retirement pensions. This includes options like the regular old-age pension, corridor pension, "Hacklerregelung" (long-term insured persons), or heavy worker's pension.

Analysis of the applications shows that individuals eligible for the long-term insured persons' regulation accounted for the largest group, with 104 applications. Men overwhelmingly dominate the applicant pool, with 227 applications from men compared to only 62 from women at the Pensionsversicherung (PVA). The Ministry of Social Affairs acknowledges the low uptake, stating that a financial assessment is premature and that the scheme is a new model requiring time to establish. They also recognize the need for more intensive public information campaigns, which they plan to conduct with social partners.